Circular No. SMD/POLICY/CIR-2/2002 Dated 10.01.2002: SEBI Board, in its meeting dated 28.12.2001 had decided that no broker member of the stock exchanges shall be an office bearer of an exchange i.e. hold the position of President, Vice President, Treasurer etc. This requires amendments to the Rules, Articles etc. of the stock exchanges.

Therefore, all the recognised stock exchanges are required to suitably amend their Rules, Articles etc. within a period of two months from the date of the order i.e.10.01.2002 to give effect to the decision taken by SEBI Board. On Stock Exchange’s failure to comply with the order within the period specified, SEBI may make the Rules / amend the rules of the concerned stock exchanges.

Amendments to the Listing Agreement

Circular No. SMD/POLICY/CIR-1/02 Dated 02.01.2002: The SEBI Board in its meeting held on 01.11.2001 had decided to amend the Listing Agreement as follows:

Amendment to Clause 19: The companies shall be required to give prior notice of at least 7 days to the stock exchanges about the Board meetings at which the proposal for Buy Back of Securities is to be considered.
Amendment to Clause 20: The companies shall be required to intimate the stock exchanges within 15 minutes of the closure of the Board Meetings about the decision on Buy Back of Securities.

Mutual Fund Division

Rendering investment advice and reporting of Compliance Officer to SEBI

Circular No. MFD/CIR No 12/362/02 Dated 03.01.2002 : It has been decided that the amending SEBI (Mutual Funds) Regulations, 1996 pertaining to rendering investment advice and reporting of non-compliance of regulations to SEBI by the compliance officer must be implemented strictly.

Ministry of Finance

Central Board Of Direct Taxes

Enterprises approved u/s 10(23) G of the Income Tax Act

Notification Nos.1/2002 & 2/2002 both dated 03.01.2002:

1. Malana Hydro Electric Project at Jari, Kullu Distt, HP

2. M/s G.V.K. Industries Limited, Hyderabad

Enterprises approved u/s 10(23C) of the Income Tax Act

Notification Nos. 380/2001 to 384/2001 All dated 31.12.2001:

1. Sri Kanyakumari Gurukula Ashram, Kanyakumari.

2. Indian Parliamentary Group, New Delhi.

3. Srimad Ujjayini Sadharma Simhasana Sri Taralabalo Jagadguru Brihanmath Sirigere, Karnataka.

4. Dakshineswar Ramkrishna Sangha, Dakshineswar, Calcutta.

5. Dakshineshwar Ramkrishna Sangha, Adyapeeth, Dakshineshwar, Calcutta.

Excise (Tariff)

CENVAT and special duty of excise on Motor spirit and High Speed Diesel

Notification No.1/2002 Dated 11.01.2002 : The Central Government has directed that the First Schedule and the Second Schedule of the Central Excise Tariff Act shall be amended so as to incorporate the increase in CENVAT leviable on high-speed diesel and the special duty of excise on petrol. The notification shall come into force on the 12.01.2002 and shall cease to have effect on the 01.04.2002.

Storage of non-duty paid goods outside the factory premises

Circular No. 610/1/2002-CX Dated 01.01.2002 : In exceptional circumstances such as envisaged under Rule 47 (5) of Central Excise Rules, 1944 the facility of non-duty paid goods outside the factory premise, without payment of duty, may be made available to ensure no hardship is caused to the trade, however, this is subject to adequate revenue safeguards.

Customs (Tariff)

Anti Dumping Duty

Notification No.6/2002 Dated 15.01.2002 : Anti dumping duty imposed on High Styrene Butadiene Copolymer

Notification No.5/2002 Dated 14.01.2002 : Anti dumping duty imposed on Choline Chloride

Notification No.4/2002 Dated 10.01.2002 : Anti dumping duty imposed on Acrylic Fibre

Notification No.3/2002 Dated 09.01.2002 : Anti dumping duty imposed on Trimethoprim

Notification No.1/2002 Dated 02.01.2002 : Anti dumping duty imposed on Lead Acid batteries

Notification No.133/2001 Dated 31.12.2001 : Anti dumping duty imposed on Acrylic Fibre

Classification of hot pepper seeds in the Customs Tariff

Circular No. 3/2002 Dated 08.01.2002 : Hot pepper seeds imported for sowing or otherwise are appropriately classifiable under heading 12.09 (sub-heading 1209.91) and are eligible for benefit of notification No.17/2001-Customs (Sl.Nos.7 and 24 of the Table).

Import duty leviable on Cotton, not carded or combed

Notification No. 2/2002 Dated 08.01.2002 : The Central Government has directed that the First Schedule of the said Customs Tariff Act be amended so as to accommodate the increase in the import duty leviable on Cotton, not carded or combed falling under chapter 52 of the First Schedule to the Customs Tariff Act making it 10%. The notification shall come into force on 09.01.2002.

Application of PFA Act 1954 for clearance of consignments of food articles

Circular No. 1/2002 Dated 08.01.2002 : After it has been clarified by the Ministry of Health and Family Welfare that the PFA Act is not applicable for food meant for export, therefore, the Commissioner of Customs if satisfied that imported food items, after their processing in EOUs or units in EPZ/SEZ, shall be exported and no part thereof shall be sold in India, he may allow clearance of such food items without mandatory testing under the said Act.

Amendments in the first schedule to the Customs Tariff Act, 1975 - Appointed date

Notification No.134/2001 Dated 31.12.2001 : The Central Government has appointed 01.01.2002, as the date from which the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) shall be amended in the manner specified in the Third Schedule to the Finance Act, 2001.

Customs (Non Tariff)

Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Amendment Rules, 2002

Notification No.1/2002-NT Dated 04.01.2002 : The Central Government has notified Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Amendment Rules, 2002 to further amend the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 that shall come into force on 04.01.2002.

Department of Revenue

Foreign Travel Tax (Amendment) Rules, 2002

Notification No. GSR10(E) Dated 04.01.2002 : The Central Government has notified the Foreign Travel Tax (Amendment) Rules, 2002 to further the Foreign Travel Tax Rules, 1979 that shall come into force on 04.01.2002.

Inland Air Travel Tax (Amendment) Rules, 2002

Notification No. 1/2002-Inland Air Travel Tax, GSR9(E) Dated 04.01.2002 : The Central Government has notified the Inland Air Travel Tax (Amendment) Rules, 2002 to further amend the Inland Air Travel Tax Rules, 1989 that shall come into force on 04.01.2002.

Department of Economic affairs-IRDA

The Insurance Regulatory and Development Authority (Re-Insurance Advisory Committee) Regulations, 2001

Notification No. SO38 (E) Dated 08.01.2002 : The Insurance Regulatory and Development Authority in consultation with the Insurance Advisory Committee has notified the Insurance Regulatory and Development Authority (Re-insurance Advisory Committee) Regulations, 2001 that shall come into force on 08.12.2002.

Reserve Bank Of India

BPBC Series

Guidelines for Investments by banks/FIs

Circular No. BP BC 56/21.04.048/2001-02 Dated 09.01.2002 : Banks/FIs are advised to exercise due caution while taking any investment decision to subscribe to debentures, bonds, shares etc. and refer to the 'Defaulters Lists’ circulated by the RBI to ensure that investments are not made in companies/entities who are defaulters to the banks and FIs.

DBOD Series

Valuation of investments by banks

Circular No. DBOD BP BC 57/21.04.048/2001-02 Dated 10.01.2002 : In terms of circular DBOD. BP. BC. 24 / 21.04.048 / 99 dated March 30, 1999, banks were advised to appropriate the excess provision towards depreciation on investments to Investment Fluctuation Reserve Account (IFR) instead of Capital Reserve Account. Banks were permitted to utilise the amount held in IFR to meet, in future, the depreciation requirement on investment in securities. In the context of the substantial decline in the yield on securities, the position has been reviewed in consultation with major commercial banks and certain important Guidelines have been issued in this regard.

DNBS Series

RBI Regulations for NBFCs

Notification No. DNBS (PD) CC No 18/02.01/2001-02 Dated 01.01.2002 : Certain important changes have been brought in the NBFC Regulations.

Amendments- Residuary Non Banking Companies (Reserve Bank) Directions, 1987

Notification No. DNBS 156/CGM (LMF) -2002 Dated 01.01.2002 : Amendments have been made in paragraph 6 of the said Directions.

Amendments- Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998

Notification No. DNBS 155/CGM (LMF) -2002 Dated 01.01.2002 : Amendments have been made in paragraph 8, 9A, 11B and 12 of the said Directions.

Press Releases

RBI liberalises Money Changing Facilities

Press Release No. 793/2001-02 Dated 12.01.2002 : Resident entities wishing to undertake restricted money changing would no longer be required to obtain licence from the Reserve Bank of India. Under the new scheme announced by the Reserve Bank, Authorised Dealers (ADs) and Full Fledged Money Changers (FFMCs) have been accorded the freedom to enter into agency/franchising agreements for the purposes of carrying on the business of conversion of foreign currency notes, coins or travellers cheques into rupees. ADs and FFMCs desirous of entering into such business arrangements would only be required to obtain a one-time approval from the Reserve Bank.

Ministry of Commerce and Industry

Directorate General Of Foreign Trade

Import of goods of Indian Origin under the various Export Promotion Schemes

Policy Circular No. 18(RE-01)/2001-2002 Dated 10.01.2002 : The export of goods of foreign origin under the various Export Promotion Schemes will not be permitted, unless the goods have been manufactured or re-processed or on which any operation has been carried out in India. However, the said circular shall not be applicable where no benefits are being claimed by exporter in terms of para 11.7 and 11.8 of the Exim Policy.

Extension of date Shipment/Export

Public Notice No. 61(RE-2001)/1997-2002 Dated 08.01.2002 : The last date of shipment/export of the quantities of coarse grain/maize allowed for export has been extended upto 31.3.2002.

Issue of DEPB for Drug Formulations - no final assessment from customs required

Trade Notice No. 17 Dated 08.01.2002 : It has been decided wherever the shipping bills were provisionally assessed pending clarification for cap values, in those cases DEPB can be issued without any final assessment. However, wherever shipping bills were provisionally assessed for additional reason other than the one mentioned above such shipping bills needs final assessment from Customs.

Amendments to ITC (HS) Classification of Export and Import items - Cotton Yarn

Public Notice No. 59(RE-2001)/1997-2002 Dated: 03.01.2002 : The Director General of Foreign Trade made amendments in the ITC (HS) Classification of Export and Import items (incorporating amendments made upto 31st August, 1998) relating to Cotton Yarn.

Amendments/ Modifications in Handbook of procedures Vol. 2 1997-2002

Public Notice No. 58(RE-2001)/1997-2002 Dated 01.01.2002 : The Director General of Foreign Trade made amendments/modifications and additions in the Handbook of Procedures, Vol.2, 1997-2002 relating to Chemicals and Allied Products and Engineering Products.

Department of Industrial Policy and Promotion

Guidelines for FDI- integrated Townships

Vide Press Note No. 3 /2002 Dated 04.01.2002 Guidelines for FDI in development of integrated Township including housing and building material were issued.

Guidelines for licensing production of Arms & Ammunitions - notified

Press Note No. 2/2002 Dated 04.01.2002 : In pursuance of the Government decision to allow private sector participation up to 100% in the Defence industry sector with foreign direct investment (FDI) permissible up to 26%, both subject to licensing as notified vide Press Note No. 4 (2001 series), guidelines for licensing production of arms and ammunitions have been notified.

Calculation of Royalty for use of Trademark and Brand name

Press Note No.1/2002 Dated 03.01.2002 : It has been decided that the following formula for calculation of royalty for use of trademark and brand name be adopted:

“Royalty on brand name/trade mark shall be paid as a percentage of net sales, viz., gross sales less agents’/dealers’ commission, transport cost, including ocean freight, insurance, duties, taxes and other charges, and cost of raw materials, parts, components imported from the foreign licensor or its subsidiary/affiliated company.”

Ministry of Consumer Affairs, Food and Public Distribution

Food and Public Distribution

Sugar (Price Determination for 2001-02 Production) Order, 2002

Notification No. GSR13(E) Dated 07.01.2002 : The Central Government notified the Sugar (Price Determination for 2001-02 Production) Order, 2002 that shall come into force on 07.01.2002.

Ministry of Communications

Department of Post

Indian Post Office (2nd Amendment) Rules, 2002

Notification No. GSR23(E) Dated 11.01.2002 : The Central Government has notified the Indian Post Office (2nd Amendment) Rules, 2002 to further amend the Indian Post Office Rules, 1993 that shall come into force on 01.02.2002.

Indian Post Office (1st Amendment) Rules, 2002

Notification No. GSR7(E) Dated 03.01.2002 : The Central Government has notified the Indian Post Office (1st Amendment) Rules, 2002 to further amend the Indian Post Office Rules, 1933 that shall come into force on 03.01.2002.

Ministry of Environment and Forests

Ozone Depleting Substances (Regulation and Control) Amendment Rules, 2001

Notification No. SO1283(E) Dated 31.12.2001 : The Central Government has notified the Ozone Depleting Substances (Regulation and Control) Amendment Rules, 2001 to further amend the Ozone Depleting Substances (Regulation and Control) Rules, 2001 that shall come into force on 31.12.2001.

Ministry of Law, Justice and Company Affairs

Department of Company affairs

Companies (Issue of Share Capital with Differential Voting Rights) (Amendment) Rules, 2002

Notification No. GSR27(E) Dated 11.01.2002 : The Central Government has notified the Companies (Issue of Share Capital with Differential Voting Rights) Rules, 2001 to amend the Companies (Issue of Share Capital with Differential Voting Rights) Rules 2001 that shall come into force on 11.01.2002.

State Express Transport Corporation (Tamil Nadu Division-II) Limited and the State Express Transport Corporation (Tamil Nadu Division-I) Limited (Amalgamation) Order, 2001

Notification No. SO53(E) Dated 10.01.2002 : The Central Government has notified the State Express Transport Corporation (Tamil Nadu Division-II) Limited and the State Express Transport 1 Corporation (Tamil Nadu Division-I) Limited (Amalgamation) Order, 2001 that shall come into force on 10.01.2002.

Company Law Board (Amendment 2) Regulations, 2001

Notification No. GSR929(E) Dated 31.12.2001 : The Company Law Board has notified the Company Law Board (Amendment 2) Regulations, 2001 to further amend the Company Law Board Regulations, 1991 that shall come into force on 31.12.2001.

Ministry of Labour

Minimum Wages

Notification No. SO9 (E) Dated 03.01.2002 : Vide this notification the revised minimum rates of wages has been specified.

Date of Enforceability of Trade Unions (Amendment) Act, 2001

Notification No. SO46 (E) Dated 09.01.2002 : The Central Government has appointed 9th January, 2002 as the date on which the Trade Unions (Amendment) Act, 2001 (31 of 2001) shall come into force.

PIB (Press Information Bureau) Releases

Subsidy Scheme for coffee growers

Dated 17.01.2002 : The government has approved an Interest Subsidy Scheme for the coffee growers for the current year under which 5% interest subsidy will be provided to small coffee growers on the working capital or crop loans availed by them.

Growth of corporate sector during November 2001

Dated 16.01.2001 : The registration of companies in India during the month of November 2001 was reviewed and 1520 companies were registered under the Companies Act, 1956 as against 1998 companies registered during the corresponding month of the previous year.

India to assist Kenya in formulation of Land Laws

Dated 14.01.2002 : India assured to help Kenya in formulating laws relating to planning of agriculture and urban land and also laws relating to dispute regulations.

Justice Jagannadha Rao Takes Over As Chairman Of Law Commission

Dated 11.01.2002 : Shri Justice M. Jagannadha Rao has taken over as Chairman of the Law Commission of India. His appointment is effective from January 3, 2002. Shri Justice Rao succeeds Shri Justice B.P Jeevan Reddy following his resignation with effect from December 31, 2001.

Chinese Delegation Of Lawyers Calls On Law Minister

Dated 11.01.2002 : A nine-member Chinese Delegation of lawyers called on the Union Minister of Law, Justice and Company Affairs, Shri Arun Jaitley. They exchanged views on legal and judicial questions of common interest.

Public Utility Services To Be Brought Under Lok Adalats

Dated 08.01.2002 : The Union Cabinet approved a proposal to amend the Legal Services Authorities Act, 1987 to insert a new Chapter VIA for providing compulsory pre-litigative mechanism (Permanent Lok Adalats). A Bill to this effect to be known as the Legal Services Authorities (Amendment) Bill, 2002 will be introduced in the forthcoming Budget Session of Parliament.

Amendment To NCDC Act To Cover Labour Coops On The Anvil

Dated 05.01.2002 : Government is proposing to amend the National Cooperative Development Cooperation (NCDC) Act to cover the labour cooperatives in the country. After its passage would enable government to provide assistance to these cooperatives.

Acts that received the President’s assent

1. The Companies Amendment Act, 2001.

2. The Constitution (Eighty- Fifth) Amendment Act, 2001.

3. The Explosive Substances Amendment Act, 2001.

4. The Essential Services Maintenance Ordinance Repeal Act, 2001.

5. The Cine-Workers Welfare Fund (Amendment) Act, 2001.

6. The National Commission for Safai Karamcharis (Amendment) Act, 2001.

Bills passed by the Rajya Sabha

1. The All-India Institute Of Medical Sciences (Amendment) Bill, 2001.

2. The Tea Districts Emigrant Labour (Repeal) Repealing Bill, 2001.

Bills introduced in the Rajya Sabha

1. The Institutes Of Technology (Amendment) Bill, 2001.

Bills passed by the Lok Sabha

1. The Jute Manufactures Cess (Amendment) Bill, 2001.

Ordinance

The Central Excise Tariff (Amendment) Ordinance, 2002 - promulgated on 10 Jan., 2002.

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